Question

FDI is not a remover of balance of payments constraints . Comment.

Answer 1

The statement given above is incorrect and I do not agree with the given statement. FDI Is a remover of balance of payments constraints.

Explanation:

• FDI provides a influx of interchange resource and removes the constraints of balance of payment. it can be  seen that an outsized variety of developing countries suffer from balance of payments deficit for his or her demand on  foreign exchange that is often so much in more than their ability to earn.
• FDI inflows by providing interchange  resources and take away the constraint of developing countries seeking higher rate.
• FDI contains a distinct advantage over the external borrowings thought of from the balance of payments purpose of read. Loans produce mounted liabilities. The governments or the firms ought to repay the debt or the liability.

To know more:

What is FDI.what is the full form of FDI

brainly.in/question/2242817

Answer 2

False, FDI removes the balance of payments constraint.

Explanation:

• FDI inflow provides foreign direct investments that act as an exchanges resources that help a country over the BOP problems and

• It also removes the constraints form the developing nations that seek a higher growth rate and helps by providing the external lending and seek higher growth rates.

Learn more about the FDI is not a remover of balance of payments constraints.

• brainly.in/question/15575100 answered by Skyfall63.